Adidas Russia/CIS and the Russian crisis: retrench or double down (Abridged case series)

Abstract

ABSTRACTThis case is based on extensive semi-structured interviews with key adidas Russia/CIS executives who were in charge of implementing the radical IT, supply chain and omnichannel initiatives that transformed adidas Russia/CIS from one of the poorest performers to the new standard within the Group. The initiatives included pioneering the rollout and implementation of key new technologies such as click-and-collect, ship-from-store, endless aisle and RFID. All of this took place in the face of the massive economic crisis that embroiled Russia at the time. With some 1,200 company-owned stores – the Group’s largest direct retail footprint globally – adidas Russia/CIS was critical to the financial success of the Group as a whole, and because of its large retail footprint, it was uniquely positioned to pioneer the development and rollout of this major IT and supply chain initiative that opened the doors to the omnichannel.Particularly fascinating is the argument that crises are moments of truth when efficiency gains are most needed; hence, they justify investment rather than retrenchment.